Markets To Gain Further Next Week

Markets may continue to gain next week as the gush of liquidity may push mutual funds and foreign investors to take fresh position in stocks. Indian markets saw some selling pressure this week, though the pressure was not too great. Results this week have been a mixed bag.

Hindustan Unilever reported a very stable quarter and State Bank of India surprised with its numbers positively. This led to a fresh rally in some of the PSU Banking names. However, Bajaj Auto numbers were not the best and the stock reacted to poor numbers.

Many analysts are now warning that the markets are over priced at these levels. For example the trailing p/e of Nifty companies is almost at 23 times, which is way higher than the historical average. It is better if investors exercise some caution before investing if the markets go higher.

The US markets rallied on Friday which means on Monday Asian markets and Indian markets could open higher. However, there is much political uncertainty around and one is not sure of the news emanating from the US. The week also saw the rates being finalized for the GST. In all probability GST would be implemented by the first week of July.

A lot of stocks would be in the news next week for quarterly numbers. Among these include the likes of Aurobindo Pharma, Coal India and both these stocks would be watched closely for numbers. If you are looking to buy, then pharma stocks would be the best bet as these look undervalued at the current levels and also a good proposition. Stocks like Glenmark Pharma have seen substantial fall from the current levels and have now fallen to 52-week lows.

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